Tower Semiconductor negotiating long-term debt restructuring with lenders, major shareholder

By Caroline Salls

Pittsburgh, Aug. 7 - Tower Semiconductor Ltd. is in advanced stages of the negotiation of a long-term debt restructuring arrangement with lenders Bank Leumi and Bank Hapoalim and major shareholder Israel Corp. Ltd., according to a company news release.

The company said the restructuring will include a substantial reduction in the level of the debt to its banks and the shareholder, deferrals of remaining principal and interest and a waiver from compliance with financial covenants for an extended period of time.

Tower said the arrangement will also include an investment in the company by Israel Corp. Ltd.

As previously reported, Tower Semiconductor and Jazz Technologies, Inc. have entered into a definitive agreement and plan of merger and reorganization, and Tower said Jazz has set Aug. 8 as the record date for a special meeting of stockholders to vote on and adopt the merger.

Tower is a Migdal Haemek, Israel, independent specialty wafer foundry.

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